DB:TM3

Stock Analysis Report

Executive Summary

ASTM S.p.A., an industrial holding company, operates in the sectors of motorway, planning and construction, engineering, technology, and services.

Rewards

PE ratio (15.5x) is below the German market (20.6x)

Earnings are forecast to grow 9.89% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Profit margins (7.2%) are lower than last year (10.3%)



Snowflake Analysis

Adequate balance sheet average dividend payer.

Share Price & News

How has ASTM's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TM3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.0%

TM3

-1.1%

DE Infrastructure

0.06%

DE Market


1 Year Return

32.0%

TM3

12.4%

DE Infrastructure

14.8%

DE Market

Return vs Industry: TM3 exceeded the German Infrastructure industry which returned 16.3% over the past year.

Return vs Market: TM3 exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

TM3IndustryMarket
7 Day-5.0%-1.1%0.06%
30 Day-10.1%-5.3%1.8%
90 Day-11.5%-3.8%7.1%
1 Year33.8%32.0%15.8%12.4%18.4%14.8%
3 Yearn/a30.9%21.4%17.4%7.0%
5 Yearn/a59.0%33.1%27.9%10.4%

Price Volatility Vs. Market

How volatile is ASTM's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ASTM undervalued compared to its fair value and its price relative to the market?

15.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TM3 (€26.16) is trading above our estimate of fair value (€11.84)

Significantly Below Fair Value: TM3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TM3 is good value based on its PE Ratio (15.5x) compared to the Infrastructure industry average (17.8x).

PE vs Market: TM3 is good value based on its PE Ratio (15.5x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: TM3 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: TM3 is good value based on its PB Ratio (1.2x) compared to the DE Infrastructure industry average (1.5x).


Next Steps

Future Growth

How is ASTM forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TM3's forecast earnings growth (9.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: TM3's earnings (9.9% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: TM3's earnings are forecast to grow, but not significantly.

Revenue vs Market: TM3's revenue (2.1% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: TM3's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TM3's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has ASTM performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TM3 has high quality earnings.

Growing Profit Margin: TM3's current net profit margins (7.2%) are lower than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: TM3's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: TM3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TM3 had negative earnings growth (-15.1%) over the past year, making it difficult to compare to the Infrastructure industry average (13.4%).


Return on Equity

High ROE: TM3's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ASTM's financial position?


Financial Position Analysis

Short Term Liabilities: TM3's short term assets (€2.2B) exceed its short term liabilities (€1.4B).

Long Term Liabilities: TM3's short term assets (€2.2B) do not cover its long term liabilities (€2.8B).


Debt to Equity History and Analysis

Debt Level: TM3's debt to equity ratio (90%) is considered high.

Reducing Debt: TM3's debt to equity ratio has reduced from 119.1% to 90% over the past 5 years.

Debt Coverage: TM3's debt is well covered by operating cash flow (22.2%).

Interest Coverage: TM3's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet

Inventory Level: TM3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: TM3's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is ASTM's current dividend yield, its reliability and sustainability?

2.05%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.5%industryaverage4.0%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: TM3's dividend (1.99%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: TM3's dividend (1.99%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: TM3's dividend payments have been volatile in the past 10 years.

Growing Dividend: TM3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.5%), TM3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TM3's dividends in 3 years are forecast to be covered by earnings (58.4% payout ratio).


Next Steps

Management

What is the CEO of ASTM's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average board tenure


CEO

Alberto Rubegni (68yo)

4.3yrs

Tenure

€320,070

Compensation

Mr. Alberto Rubegni has been the Chief Executive Officer of ASTM S.p.A. since September 2015 and serves as its Managing Director. Mr. Rubegni serves as Chief Executive Officer of Itinera S.p.A. He served a ...


CEO Compensation Analysis

Compensation vs Market: Alberto's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD2.07M).

Compensation vs Earnings: Alberto's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

8.8yrs

Average Tenure

59yo

Average Age

Experienced Board: TM3's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€496,60108 Jan 20
Gruppo Gavio SpA
EntityCompany
Shares20,400
Max Price€24.34
Buy€411,14711 Dec 19
Gruppo Gavio SpA
EntityCompany
Shares15,000
Max Price€27.41
Buy€277,83004 Dec 19
Gruppo Gavio SpA
EntityCompany
Shares10,000
Max Price€27.78
Buy€1,282,54929 Nov 19
Gruppo Gavio SpA
EntityCompany
Shares45,858
Max Price€28.31
Buy€281,01927 Nov 19
Gruppo Gavio SpA
EntityCompany
Shares10,000
Max Price€28.10
Buy€900,70322 Nov 19
Gruppo Gavio SpA
EntityCompany
Shares32,000
Max Price€28.39
Buy€278,27630 Oct 19
Gruppo Gavio SpA
EntityCompany
Shares10,000
Max Price€27.83
Buy€444,70225 Oct 19
Gruppo Gavio SpA
EntityCompany
Shares16,000
Max Price€27.79
Buy€1,312,38023 Oct 19
Gruppo Gavio SpA
EntityCompany
Shares46,403
Max Price€28.77
Buy€1,361,34118 Oct 19
Gruppo Gavio SpA
EntityCompany
Shares47,500
Max Price€28.67
Buy€700,25915 Oct 19
Gruppo Gavio SpA
EntityCompany
Shares24,272
Max Price€28.87
Buy€714,75309 Oct 19
Gruppo Gavio SpA
EntityCompany
Shares25,969
Max Price€27.58
Buy€1,055,71204 Oct 19
Gruppo Gavio SpA
EntityCompany
Shares38,000
Max Price€27.93
Buy€859,26202 Oct 19
Gruppo Gavio SpA
EntityCompany
Shares30,000
Max Price€28.81
Buy€3,010,26018 Sep 19
Gruppo Gavio SpA
EntityCompany
Shares114,000
Max Price€27.28

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Alberto Rubegni (68yo)

    CEO, MD & Director

    • Tenure: 4.3yrs
    • Compensation: €320.07k

Board Members

  • Gian Gros-Pietro (77yo)

    Chairman

    • Tenure: 7.8yrs
    • Compensation: €339.00k
  • Luigi Ferdinando Roth (79yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: €42.50k
  • Daniela Gavio (61yo)

    Deputy Chairman

    • Tenure: 12.7yrs
    • Compensation: €753.21k
  • Barbara Poggiali (56yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: €43.00k
  • Alberto Rubegni (68yo)

    CEO, MD & Director

    • Tenure: 4.3yrs
    • Compensation: €320.07k
  • Marcello Gavio (52yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: €443.00k
  • Caterina Bima (59yo)

    Chairman of Supervisory Board & Independent Director

    • Compensation: €46.50k
  • Marco Fazzini (45yo)

    Chairman of Board of Statutory Auditors

    • Compensation: €54.00k
  • Piera Braja (55yo)

    Standing Auditor & Member of Supervisory Board

    • Compensation: €32.40k
  • Arabella Caporello (59yo)

    Director

    Company Information

    ASTM S.p.A.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: ASTM S.p.A.
    • Ticker: TM3
    • Exchange: DB
    • Founded: 1928
    • Industry: Highways and Railtracks
    • Sector: Transportation
    • Market Cap: €3.444b
    • Shares outstanding: 132.86m
    • Website: https://www.astm.it

    Number of Employees


    Location

    • ASTM S.p.A.
    • Corso Regina Margherita 165
    • Turin
    • Turin
    • 10144
    • Italy

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ATBIT (Borsa Italiana)YesCommon StockITEURJan 1992
    0K82LSE (London Stock Exchange)YesCommon StockGBEURJan 1992
    ASTP.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
    ATMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
    TM3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

    Biography

    ASTM S.p.A., an industrial holding company, operates in the sectors of motorway, planning and construction, engineering, technology, and services. As of December 31, 2017, the company managed approximately 3,249 km of motorway network, including 1,373 km in Italy and 1,876 km internationally. It also engages in the study, planning, and management of rail and motorway works; and monitoring and control activities related to the transport infrastructures. In addition, the company is involved in the construction and maintenance of road, motorway, and railway infrastructures; and building works, as well as works for the construction of tunnels and underground railways. Additionally, the company is involved in the development of software for the management of road database; leasing fiber optics and sites for the positioning of transmission devices for companies operating in the mobile telephony sector; the outsourcing management and supply of integrated IT systems for motorway companies; planning and production of electrical, telephone, and electronic systems for motorway companies; and maintenance of road lighting systems. The company was formerly known as Autostrada Torino Milano S.p.A. and changed its name to ASTM S.p.A. in January 2013. The company was founded in 1928 and is based in Turin, Italy. ASTM S.p.A. operates as a subsidiary of Nuova Argo Finanziaria S.p.A. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/17 21:31
    End of Day Share Price2020/01/17 00:00
    Earnings2019/06/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.